Buying your first home is a new and exciting experience, but it comes with many questions and unknowns. Answering these unknowns is the best way to make an informed decision when buying a home. Buying a first home is a difficult task, but if you consider these three questions you’ll be better equipped as a first time homebuyer.

1. What will I be able to afford?

• When you buy your first home you need to not only consider your current income, but what your future income will likely be.
• The younger you are, the more likely it is that your income will increase in coming years.
• Make sure not to overestimate your income.
• Plan for situations that may require extra funding, like having kids, marriage or divorce.
• If you plan correctly, you can invest in a home that you really enjoy with the estimated knowledge that you will able to afford the mortgage payments over the years.
• Do not exceed your budget.

2. What additional costs are there?

• All homes will have extra costs.
• Older homes typically cost more in maintenance than newer homes.
• Homes in flood, and other disaster, areas will to cost more to maintain.
• Identify any issues before you purchase the home so you know how much more you’ll have to pay to make the home livable.
• If the house is not furnished, map out how much you are willing to spend to furnish each room; budget that into your home-buying cost.
• Even if the house is furnished, you’ll probably have some additions – build these into your cost.
• Expect to pay anywhere between 3.5%-4.5% of the cost of the home to maintain your home each year.
• Factor all move-in, maintenance, and furnishing costs into your budget.

3. Should I look outside my budget?

• Depending on how you’ve allocated your funds, your budget can be flexible or strict.
• For home costs including mortgage, homeowners insurance, and property taxes, allocate 35% or less than your income before taxes.
• If you find a home that you love, but it’s just outside of your budget it’s okay to stretch for it – as long as you’ll be able to meet the payments.
• Don’t stretch for a second place home.
• If you can’t find a home you love, start with a below-budget option so you can save up for a great home.

These tips should offer you some insight on buying your first home. Knowing more will help you make a more informed decision.

This post is created by Inspect-It 1st®, it is a Property Inspection Franchise that follows stringent home inspection checklist to offer various home inspection services, to buyers, sellers, real estate agents and others. Read more about Inspect-It 1st®. For more answers to popular questions for first-time home buyers, contact a team member at Henderson Properties today!

The home buying process is easier

When paying in cash, it’s much more simple. Your deal is more likely to be a sure thing; therefore your offer is more enticing to sellers. According to USA.gov, there are many options available for homeowners who require mortgages. However, these programs can involve lengthy application process and processing times and aren’t always a guarantee. Sellers will see you have cash and will be able to close quickly, and they will be more likely to accept your offer. In addition, you won’t have to worry about your credit score, lenders or officials from the bank approving your loan application. In other words, cash is king.

No mortgage payment

When you pay cash for your home, you won’t have to take out a mortgage. This means you won’t have to pay a bill monthly to your lender — and better yet, you won’t have to pay any interest on your home. Interest rates on mortgages can mean thousands of dollars more spent on your home over the course of a 15-year or 30-year period; According to HUD.gov, most home buyers have to shop around to find the best rates. Without a mortgage to pay monthly, you will have a lot more freedom in your monthly budget.

The Security

Unforeseen things happen daily. Whether you lose a job or have an unexpected medical expense, you won’t feel as stressed about it if you don’t have a mortgage. In addition, you can invest in a better homeowners insurance policy and increase your home security in Charlotte. According to USA.gov, investing in home security can help save you even more money on your policy. Since you don’t have to worry about a monthly payment, you can invest in a better policy that provides you with nearly complete coverage in any type of event; This also helps you to protect assets, and will allow you to sleep easier at night.

Closing costs will be lower

The cost to close on a home is expensive, and a portion of it is paid by the buyers. If you’re paying cash, your closing costs will not be as high because there isn’t as much legwork involved in sealing the deal.

The market fluctuations

If you choose to sell your home in the future, you won’t have to worry about earning enough money to cover the rest of your mortgage. That, in turn, will allow you to make another down payment. With a cash investment, the sale of your home will be entirely profit.

Paying cash for your house allows you to invest your money while still having equity available to you if you need it. At the same time, without a mortgage payment, you will have more freedom with your monthly income. This means more vacation, more discretionary income and more fun.

Megan Ericson, Guest Post Author

A real estate agent and financial consultant for local SMBs, Megan shares insights on how to organize your finances.

Buying your first home does not have to be a horror story if you take the time to prepare for the process and to avoid all of the common mistakes that inexperienced buyers make. By taking the time to understand the current market conditions and how these conditions can affect your ability to borrow or buy, you will feel more at peace with your decision to proceed or wait.

Believe it or not, now is the time for a first-time buyer to buy. With home values steadily rising and record-low mortgage rates being offered to quality borrowers, individuals who have been saving to buy their first home may want to take the plunge now in the buyers’ market.

No matter how great the market conditions may seem, there is plenty of information you will need to know to avoid making the common mistakes that rookie real estate buyers make. Here are the 10 things you should know before you choose a property or enter into a long-term mortgage contract:

10 Questions You Should Have the Answers to Before Buying Your First Home

1. How much can you afford to pay for your mortgage in addition to other monthly bills?

You should know just how much you can afford to put down on your home and how much you can afford to pay each month before you even start viewing properties. If you are buying your first home, you have probably been looking at listings online for quite some time. You might believe that you can afford to pay $2500 per month, but have you considered all of the additional expenses that are associated with owning a home? As a homeowner, you will be taking on more bills. Insurance, property taxes, maintenance, and utilities will all add up. You also cannot forget your other debts when you budget how much house you can afford.

Ultimately, when you finance a home, the lender is going to tell you how much they believe you can afford. You can always go under this limit, but you only have the option to go over if you are willing to pay the difference in cash. By using a mortgage calculator, there is a good chance you can get an idea of how much you will qualify for before you are qualified. This will help you search in the right price range so that you have realistic expectations.

2. Is getting pre-qualified enough?

Another step to take before you start viewing properties is getting pre-approved for a loan. You might think that pre-qualified letters are enough to make an offer, but practically none of your financial information is verified for a pre-qualification. When you apply for a pre-approval, the lender will run your credit and verify your financials so that you know how much the lender believes that you can afford. This letter is also essential when you are making an offer to show the sellers that you are worth negotiating with.

3. Do you have the right buyer’s agent?

When you are buying a home, you need an agent that will represent you. A buyer’s agent has a fiduciary responsibility to only you as the buyer. They will show you listings, ask you about your goals, and help narrow down a list of properties that will meet your needs. Make sure you take the time to interview agents before you sign any agreements. Screening an agent should be similar to how employers screen interviewees. You should identify strong suits and weaknesses so that you choose the right professional to find you the perfect home.

4. Which mortgage is right?

If you are not a finance expert, deciding which mortgage is right for you all by yourself may be difficult. Before you choose a fixed rate or adjustable rate mortgage you should ask your banker every question you can think of. If you earn a fluctuating income, you may need a different mortgage than a salaried professional. If your financial situation will change for the better, this should be considered. Be sure that your mortgage banker knows your whole situation before letting them recommend different financial products.

5. What documents will you need to complete the mortgage application?

The bank can easily run your credit report to review your score and your history. You will also need your W-2′s, bank statements, asset statements, and pay stubs from the last 3 to 6 months to complete your application.

6. What is the difference between must-have features and desires?

Learning how to separate your wants from your needs is critical. When you are working with your agent, you may be asked to construct a list of wants and must-haves. Must-haves may include the number of bedrooms, the location, a garage, a yard, or other property features that cannot easily be changed. Wants may include items like granite counter tops, hardwood floors, and a pool. Make sure not to cross a home off the list is you can easily upgrade the home. After all, you can upgrade counter tops but not location.

7. What is a reasonable first offer?

In a perfect world, your first offer will be accepted by the seller. In the real world, there will be competition and you have to keep this in mind when you are submitting your first offer. Consider the listing price, the current market conditions, comparable sales reports, and asking for credits instead of making the offer too low to make your offer stand out. Your agent should give you advice, but ultimately you will be the one deciding how much you are willing to pay.

8. Is an inspection necessary?

Not only should your offer be contingent on the inspection, the inspection is a requirement when you are financing a home. Just because a property looks like it has been well maintained does not mean there are not hidden expensive issues that need to be fixed. Find out how much you will need to invest into a home before you proceed in buying it. This can also give you bargaining power if issues do arise.

9. Is a contingency clause necessary in a mortgage contract?

Mortgage loans take time to close. In the event that you lose your job, or the home appraises below the purchase price of the property, you will lose the money you have placed down to secure the property unless there is a contingency clause. Life happens and protecting yourself when things do not go as planned is imperative.

10. Is home insurance required?

If you are financing your home, you must have home insurance before you can even close your loan and get your keys. It is important to work with an insurance agent weeks before your appointment to close so that there are no problems. Be sure that the mortgagee is listed just right on the policy or it could delay the process.As you can see, there are plenty of questions you will need answers to when you are buying your first home. By building the right team of professionals, you can make the process all the easier. Get the right mortgage, the right agent, and ultimately buy the right home.

Foreclosures have many benefits that traditional housing purchases don’t. Since foreclosures are typically owned either by the bank or the government, the seller wants to close the deal as soon as possible. This means there are rarely negotiations, and the first bid usually wins. Because the banks and the government both have a huge inventory of homes that they need to get rid of, the homes are usually priced very reasonably. This means that the first-time home buyer also doesn’t have to worry about overpaying.

Buying a foreclosure from a bank or from the government is a slightly different scenario. Banks tend to move faster on the sales than the government does, but the government homes tend to be better maintained.

Many banks could not keep up with the maintenance on all of their foreclosures, which is why they need to move the inventory quickly. The government, however, had initiatives to remodel and repair many of the homes that fell into their inventory, which means the homes may be in better condition.

One of the major issues with buying a foreclosure is that there may be hidden damages in the property. Foreclosed properties have often been poorly treated. Sometimes the previous owners take their frustrations out on the property before they leave, and sometimes the banks simply can’t maintain the buildings. A common problem in foreclosed properties in colder areas is burst pipes because the utilities were not paid. These are issues a first-time home buyer might either not notice, or not know how expensive they are to fix.

A very thorough home inspection is always necessary when buying a foreclosure, but it may not catch everything. Even the most thorough of home inspectors have certain issues that they simply would not be able to catch without going into the home’s walls or pulling up boards. Because of this, anyone buying a foreclosed property is right to be cautious. There are also hidden expenses, such as replacing appliances, since the appliances in foreclosed properties are usually older.

Buying a foreclosed property can be a great deal for a prudent investor, but all of the appropriate steps need to be taken to make sure the home won’t cost more than it’s worth.

To begin, the Federal Reserve chairman’s, Ben Bernanke, recent comments suggest that that the Fed will continue its accommodative stance on money supply and that its bond-buying program will continue. This alleviates concerns from investors that the program may be scaled back and with it reducing liquidity in the marketplace.

In response to Bernanke’s comments, the stock market continued its upward march. On February 27, 2013, the Dow Jones Industrial Average surged 1.2% to close at 14,075, eclipsing its previous peak from October 2007. The major stock indices are up six to seven percent year-to-date.

There is a variety of positive news from the housing sector as well:

• Pending home sales rose 4.5% in January 2013, reaching levels not witnessed since April 2010
• Home prices soared 7.3% in Q4 2012
• Total home sales jumped 15% in January 2013 from the prior month and 30% year-over-year

Following on from the news, stock prices for the major homebuilders rose, with Hovanian Enterprises (NYSE: HOV) closing up five percent on the day. Some of the major homebuilders have outperformed the broader market in 2013, for example DR Horton (NYSE: DHI) gained 13% in the first two months of 2013.

Durable goods orders dropped 5.2% to $11.8 billion in January 2013. While this level was below expectations, economists point out that the drop was exacerbated by volatility in the transportation sector. This sector witnessed a 10 percent jump in December 2012 and then plummeted 20 percent in January 2013. The orders for non-transportation goods actually increased 1.9% during the month, prompting Paul Ashworth, Chief Economist at Capital Economics, to comment that the order levels are much better than suggested by the data.

With the increasing globalization of the financial markets, investors are keeping an eye on Europe, particularly some of the southern Eurozone countries, like Greece, Spain and Italy. The Italians in particular have been under scrutiny given the recent elections. However, they completed a successful auction for €6.5 billion worth of government bonds, thereby removing, at least temporarily, a revival of the Italian sovereign debt crisis.

The economic environment suggests renewed optimism among investors. The strength of the equity markets and the Fed’s prevailing QE program should continue to support the positive trends in the real estate market, which is expected to perform well in the coming months.

As spring approaches, you likely are looking at your deck or patio with a yearning for those late, humid North Carolina summer nights and barbecue dates with friends. Before you can open your deck for summer entertaining, you need to give it a little love. Here are some tips to help you spring clean your deck or patio so you are ready for the late nights of summer.

Clean up Debris

It may seem obvious, but the first step is to clean up debris. Decaying leaves, sticks and dirt can stain the patio or deck material, so the sooner you clean them off, the better off your deck will be. You can easily clean the big items with a sprayer attachment on your hose. Just rinse them off into your yard. You can also sweep your deck if you prefer.

Deep Down Clean

Wood decks need to be cleaned in the spring to help preserve their appearance. Use an oxygenated bleach cleaner designed for wood decks and a soft scrub brush. The cleaner will kill mildew and remove dirt. Scrub the cleaner into the wood and leave it on for a 15-minute period, then rinse off.

If you are cleaning a patio, a simple water and soap solution can work well. Scrub it into the stones and the rinse clean. While you are scrubbing, look for loose patio stones, and take the time to replace them if you need to.

While you are at it, don’t forget to give your patio furniture a good scrubbing. Chairs and tables can be cleaned using a stiff brush and plain dish detergent, as long as the furniture isn’t made of wood. If you have wood furniture, purchase a cleaner designed for wood furniture.

Staining Your Deck

If your deck is starting to turn a bit gray and you want to restore it to its former glory, then you need to sand and stain it. The early spring is the best time to do this, as exposing the wood to the heat of the summer months will add stress that it’s not meant to endure.

To sand the deck, make sure all screws and nail heads are below the wood level. Then, sand it until the gray is gone. Once you are done, vacuum it to get all of the sawdust off. Once it’s clean, stain it and then seal it.

There you have it. If you take the time to clean your roof, windows, siding and deck, your home will be ready for the rigors of summer, and it will look great too. So set aside a few weekends in the coming months for some outdoor spring cleaning, and get ready for all that summer can throw at you.

Lest you thought your spring cleaning tasks were complete with the roof and windows, let’s not forget about the siding. Your home’s siding takes a beating all year long, with exposure to moisture, wind, sun and changing Charlotte-area temperatures. As you are sprucing up your place this spring, don’t forget to take a close look at your siding and take the time to give it a little TLC.

Check the Siding

The first step in this process is to inspect your siding. If you can repair damage or cover chipped paint early, you can prevent costly repairs. Here’s what you should look for when inspecting your siding:

• Signs of water damage at seams
• Cracked caulk or caulk pulling away form the surfaces
• Chipped or peeling paint on wood siding
• Cracked boards on wood siding
• Crumbling mortar on brick siding
• Mold or mildew on siding of all types
• Bent or damaged vinyl siding

If you notice these problems, research how to fix them, or call a siding repair professional for help.

 Wash the Siding

Whether you have wood, metal, brick, vinyl or some other composite type of siding, it needs a good washing. Washing your siding will remove mildew and grit that can eventually damage the materials. To wash your siding, mix up a bucket of warm water with trisodium phosphate, about 1/2 cup per gallon of water, and use a soft-bristled brush to scrub the siding gently with the solution.

To make this task simple, do a 20-foot section at a time. Scrub the section from top to bottom so the debris does not fall on a clean area. Then, rinse with your hose and a sprayer attachment. Keep in mind that this task will require a ladder if you have a two-story house.

A Caution About Power Washers

Power washers can make the task of cleaning your siding a bit quicker, but be careful. A power washer sends water out at a very high pressure. If you know how to use one, it can work well, but if you don’t, you could end up with stripped paint, loosened caulk or broken mortar. If you have wood siding, it could even create gouges. Water can also penetrate at joints and seams if you aren’t careful. A power washer is best left in the hands of someone who knows how to use it.

Your home’s siding is the first thing people notice when they see your property. Make sure it is looking its best with a little extra effort this spring. Once you are done, you’re ready to climb down off that ladder and tackle the final part of spring cleaning your home’s exterior, and that is your deck or patio.

The first step in getting your home ready on the outside for the coming spring and summer months is your roof. Once you’ve inspected and tidied the roof, you’re ready to move on to your windows. With clean, fresh windows, you will be able to enjoy the sunlight that will be streaming into your home in he next few months, and also improve the curb appeal of your property. Here are some tips to help make scrubbing up those windows a little easier.

Gather the Right Materials

Before you begin, make sure you have the right materials. Use the commercial window cleaner of your choice, but instead of rags, get some newspaper to crumple up. This will create the streak-free shine you want, and it’s a great way to recycle at the same time. You will also want an old, soft toothbrush to do the corners. Finally, you will need at least one rag to dust ledges and other areas where you can’t use cleaner.

Clean in the Right Order

Nothing is as frustrating as spraying down your window and starting to scrub, only to find that the cobwebs and dust in the corers are making your job much more difficult. Grab that toothbrush and tackle the corners first, as this is where debris loves to hide.

Once the corners are clean, move to the ledges and window sills. Sills on the inside of the window can be cleaned with the appropriate product for the surface type. On the outside, don’t use cleaner, because it might damage your wood. Instead, use a soft, dry rag to remove the dust and debris.

Next, move to the blinds. Yes, they are on the interior of your home, not the exterior, but if you’re taking the time to clean the windows, you might as well clean the blinds. Dust your blinds with a cotton rag or even dryer sheets.

Now, you are finally ready to do the glass. Spray a small amount of cleaner directly on the glass, avoiding the wood. Rub it dry with the newspaper. If any cleaner drips on the wood, clean it immediately to avoid damage. When you are done with one side of the window, move to the other. Inspect as you go to ensure that there are no spots or streaks, especially if you are up on a ladder to do the job. The last thing you want is to find out you missed a spot after you are all done.

Cleaning your windows isn’t hard, but it is time consuming. So set aside a weekend and wish for sunny weather so you can get out there and do it. When you’re done, then you’re ready to tackle your siding next, which we will talk about in the next installment.

Newspapers have been full of reports of recent signs of a revival in the area’s housing market and growth in Charlotte’s economy.

Forbes Magazine recently listed Charlotte as the fifth fastest growing city in the U.S. With 32.8% growth since 2000, Charlotte’s population and potential are on the rise.

As Charlotte’s population grows, so does its economy. Reported by the Charlotte Business Journal, according to On Numbers latest monthly economic index, Charlotte has gained 15 spots since January in the rankings for March. The list is based on conditions in 102 major metropolitan areas with populations above 500,000.  They evaluate private sector job growth, housing price appreciation and earnings, among other metrics.

Not only do people love to live in Charlotte- they are also starting to visit and bring their families which adds to the viability as an investment market.  Surveys by Liveability.com and Hotwire.com list Charlotte as a top Spring Break Destination for families and as a City with Travel Value.

So what does all this mean?  It means Charlotte has an economic climate and quality of life that makes investors pay attention, even abroad.  This isn’t new news of course. In 2011, FDI Magazine (published by the Financial Times) ranked Charlotte as the number three large city in the U.S. for attracting foreign investment.  But investment has recently turned to the real estate market.

Charlotte-based diversified real estate company Henderson Properties can attest to this foreign investment interest in Charlotte.  Their brokerage division is reported to be working with both 2 Australian and one Chinese/New Zealand private equity investors/groups. Charlotte was one of just six American cities targeted by one Australian group, and together with Henderson Properties, they plan to invest more than $3 million into the local rental market.

“I chose to invest in Charlotte because of the growing diversity in its economy in the energy and technology sectors, but also because it’s such a livable city,” said Janis Gwee of Sydney.  “Henderson Properties were our boots on the ground to identify each rental property opportunity and then provide us with property management so it’s one of the easiest markets we invest in.”

Other assets have been acquired by foreign investors such as Mint Hill Festival shopping center which was bought by a Canadian real estate firm, Sierra. More announcements about large foreign real estate investment are expected soon.

Spring is in the air, and with it comes thoughts of decluttering and landscaping. As you open up your windows to air out your home, your thoughts turn to spring cleaning. While you likely have a long list of spring cleaning tasks for inside your home, don’t forget about the outside. In this series we will talk about four ways to spruce up your home’s exterior this spring.

This winter has been a particularly interesting one in the greater Charlotte area with more snow than normal, and the changing temperatures and precipitation have likely done a number on your yard and your home’s exterior.

As you get ready for the summer, it’s time to take a closer look at your home, starting at the top and working your way down, to spruce it up a bit. Let’s start by taking some time to clean up your roof.

Spring Means Roof Inspections

Grab a ladder and head outside, it’s time to inspect your roof. The rain, rare snow, ice and wind that bombarded your home in the winter months took a toll on your shingles and roofing materials. If you ignore this, you’re setting yourself up for leaks when the spring rains come battering down on your roof. Preventative maintenance is the key to avoiding costly repairs.

Once you are up there, take a close look at the shingles and flashing. Signs of problems include:

• Buckling, blistering or curling shingles
• Worn areas around pipes, lights or chimneys
• Cracked caulk on flashing
• Rust spots on flashing
• Sand-like granules on tiles or in gutters
• Large amounts of moss or lichen

If you notice any of these problems, you’ll want to contact a roofing professional for help.

Clean up Your Roof

Once you’ve inspected your roof and given it a clean bill of health, it’s time to clean up a bit. Remove fallen branches, leaves and other debris from the roof deck, around the chimneys and around the vents. Then, move to the gutters. After a long winter, they might be nasty, but you need to remove the sludge and dead leaves to be ready for spring rains. If you want to avoid the task of cleaning out your gutters next year, consider installing some gutter guards now, before the pollen and tree buds start to fall and clog up your gutters again.

After cleaning the gutters, grab a hose and run some water through them, checking for leaks. Repair any leaks you find so your gutters will be ready for spring.

All it takes is an afternoon to spruce up your roof and get it ready for the spring and summer months. By doing so, you’ll help increase its longevity.

The roof is just the first step in spring cleaning your home’s exterior. Now that your roof is clean, let’s take a few steps down the ladder and talk about cleaning up those windows.